Is the ID numbers of affiliates of the enterprise considered the TIN for the branch of the enterprise in Vietnam?

What are regulations on handling of TIN in case where a branch of a enterprise has its TIN deactivated due to tax-related violations in Vietnam?

Pursuant to Article 8 of Decree 01/2021/ND-CP, it is stipulated as follows:

Enterprise ID number, ID numbers of affiliates of the enterprise, enterprise location ID number

1. Each enterprise is issued a unique number called a enterprise ID number. This ID number simultaneously serves as the TIN and the social insurance participation number for the enterprise.

2. The enterprise ID number exists throughout the enterprise’s operations and is not reissued to other organizations or individuals. When a enterprise ceases operations, the enterprise ID number ceases to be valid.

3. The enterprise ID number is created, sent, and received automatically by the National enterprise Registration Information System, the taxpayer registration information system, and is recorded on the Certificate of enterprise Registration.

4. State management agencies uniformly use the enterprise ID number for state management tasks and exchange information about enterprisees.

5. The ID numbers of affiliates of a enterprise is issued to branches and representative offices. This ID number also serves as the TIN for the branch or representative office.

6. The enterprise location ID number is a 5-digit ID number issued sequentially from 00001 to 99999. This ID number is not a TIN for the enterprise location.

7. In cases where a enterprise, branch, or representative office has its TIN validity terminated due to violations of tax laws, they are prohibited from using the TIN in economic transactions from the date the tax authority publicly announces the ID number's termination.

8. For branches and representative offices established before November 1, 2015, but not yet assigned a ID numbers of affiliates, the enterprise should contact the tax authority directly to be assigned a 13-digit TIN, then proceed with the procedure to change the registration content at the enterprise Registration Agency as per regulations.

9. For enterprisees established and operating under Investment License, Investment Certificate (which also serves as a Certificate of enterprise Registration), or equivalent legal documents, Securities enterprise License, the enterprise ID number is the TIN issued by the tax authority for the enterprise.

Thus, it can be understood that if a branch of a enterprise has its TIN invalidated due to tax law violations, the branch is prohibited from using the TIN in economic transactions from the date the tax authority publicly announces the ID number's termination.

Is the ID numbers of affiliates of the enterprise considered the TIN for the branch? What is the significance of the 10th digit in the 10-digit TIN in Vietnam? (Image from Internet)

How many digits are included in a TIN of enterprise in Vietnam?

Based on Clause 3, Article 5 of Circular 105/2020/TT-BTC, it is prescribed as follows:

TIN structure

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3. Types of TIN structures

a) A 10-digit TIN is used for enterprises, cooperatives, legal entities, or organizations without legal status but which directly incur tax obligations; representatives of households, enterprise households, and other individuals (hereinafter referred to as independent units).

b) A 13-digit TIN with a hyphen (-) used to separate the first 10 digits from the last 3 digits is used for dependent units and other subjects.

c) Taxpayers who are economic organizations, and other organizations as specified in Points a, b, c, d, n Clause 2 Article 4 of this Circular, have full legal status or do not have legal status but directly incur tax obligations and are fully responsible for all tax obligations before the law are issued a 10-digit TIN; dependent units established under the legal provisions of above-mentioned taxpayers, if incurring tax obligations and directly declaring and paying taxes, are issued a 13-digit TIN.

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Thus, it can be concluded that enterprises use a 10-digit TIN.

What is the significance of the 10th digit in the 10-digit TIN in Vietnam?

According to Clause 1, Article 5 of Circular 105/2020/TT-BTC, regarding the structure of the 10-digit TIN:

TIN structure

1. TIN structure

N1N2 N3N4N5N6N7N8N9 N10 - N11N12N13

In which:

- The first two digits N1N2 are the TIN range.

- Seven digits N3N4N5N6N7N8N9 are defined according to a certain structure, increasing gradually from 0000001 to 9999999.

- The digit N10 is the check digit.

- The three digits N11N12N13 are serial numbers from 001 to 999.

- The hyphen (-) is a character used to separate the group of the first 10 digits from the group of 3 last digits.

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Thus, the 10-digit TIN is structured as specified above.